The document discusses how social ROI can be determined for business initiatives. It suggests that social media benefits like influence, loyalty and engagement can be converted into monetary terms to show a defendable ROI. An example is provided showing potential revenue gains, cost savings and social monitoring solution costs over time, demonstrating a 488% ROI. The document advocates expressing social media results in terms that executives understand, such as dollars, to justify the costs of social strategies.

1. Yes, social ROI can be
determined
www.kathyherrmann.comwww.webershandwick.com

2. 2
The rules of business remain in effect even
when you transition your company to a
social business model.

3. Social media can and should be valued.

4. Expect high social margins
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
1 2
Dollars
Year
Gains versus Costs
(Undiscounted)
Revenues
Cost Savings
People Costs
Social Monitoring Solution Costs
Gains
Costs
ROI = 488%

5. Show social media
results in ways client
CXOs will best
understand….
…and that’s dollars
and sense, with a
defendable ROI.

6. Convert social benefits (like influence,
loyalty, engagement, etc.) into
monetary terms….
…yes, it can be done.

7. Couple
defendable
assumptions
with
appropriate risk.

8. 8

9. Social Gains versus Costs

10. 10

11. Sales
Revenues
Earn higher revenues from better messaging.
Expand revenues by
extending Impact, Reach, and Yield.

12. Consumer Insight
Savings
Social Monitoring – Gain cost savings by
substituting ongoing and real-time social
monitoring for traditional market research.

13. Brand Protection Savings
Gain savings from early
warnings to brewing crises,
conversations and events.
Fast action means revenue
preservation and lowered
agency costs for crisis
mitigation.

14. Lead Generation Savings
Gain savings via
• Lowered cost of lead
acquisition, and
• Shortened sales cycle.

15. 1. Lower the number of incidents (or cases).
- Identify brewing situations. Respond quickly
and effectively.
Call Center Savings
2. Decrease the time per incident or case.
- Through better knowledge management or
triage.

16. People costs…
• Client employees who
make up the social team.
• Third parties can include:
– PR agency.
– Marketing agency.
– Consultants.

17. Tech costs for Social platform
Pretty doggone low compared to
gains potential.

18. Summary

19. Social business initiatives can and
should be valued.

20. 20
Know social value and risk, and then
you’re ready for the big leap.

21. Contact information
Kathy Herrmann
571-236-7929
sales@kathyherrmann.com
www.kathyherrmann.com
Natalie Petouhoff
(310) 854-8270
npetouhoff@webershandwick.com
http://www.webershandwick.com